U-Haul Holding Company (UHAL) Income Statement

The revenue trajectory appears stable but unspectacular, with growth rates hovering in the low single digits across the last ten quarters. The most recent quarter (2027Q1) saw a 3.2% increase, consistent with the prior year's pattern. This suggests that UHAL is not experiencing significant expansion or contraction, but rather a steady, mature business. The lack of acceleration may indicate limited pricing power or market saturation, though the consistent growth suggests resilience in the rental and leasing sector.

The gross margin data reveals extreme volatility, with quarters like 2027Q1 showing a 95.7% margin, while 2026Q3 shows a mere 4.8%. This suggests that COGS can spike dramatically, likely due to depreciation or maintenance costs associated with the rental fleet. Such swings imply that UHAL's cost structure is highly sensitive to fleet utilization and replacement cycles. Investors should monitor whether these fluctuations are seasonal or indicative of a longer-term trend in rising costs, which could pressure profitability.

The operating income pattern shows significant operating leverage, but it is obscured by seasonal losses. For instance, 2026Q4 and 2025Q4 both reported negative operating income, while the first and second quarters of each year are strongly positive. This suggests that UHAL's fixed costs, such as depreciation and maintenance, are high, and revenue fluctuations can quickly turn operating income negative. The positive quarters show strong operating margins (14-19%), indicating that when revenue is robust, the company scales efficiently. However, the recurring quarterly losses highlight the risk of underutilization during off-peak periods.

The cost structure is heavily weighted towards COGS, which includes depreciation and maintenance of the rental fleet, while SG&A is negligible. This suggests that UHAL's primary expenses are tied to asset utilization and upkeep, not administrative overhead. The variability in COGS, which can be as high as $1.5B in a quarter, indicates that the company may be incurring significant costs during periods of fleet turnover or heavy maintenance. The low SG&A implies a lean corporate structure, but the high COGS volatility is a key risk factor for margin stability.

The 2026Q3 quarter stands out as a critical inflection point, where gross margin plummeted to 4.8% from the typical 85%+ levels. This was driven by a massive spike in COGS to $1.3B, which is nearly equal to revenue. This suggests a one-time or unusual event, such as a large write-down or accelerated depreciation, possibly related to fleet impairment. The lasting impact is that it highlights the vulnerability of UHAL's margins to cost shocks. Investors should investigate the cause of this anomaly, as it may indicate underlying issues with asset valuation or maintenance practices.